Burgan set to buy UGB assets for $1bn

Kuwait City, April 27, 2008

Kuwaiti lender Burgan Bank is close to buying the commercial lending activities of Bahrain's United Gulf Bank (UGB) for more than $1 billion, a report said.

United Gulf Bank would make a profit of $570 million from the sale, Kuwait's Al-Rai newspaper said, without citing anyone.

Burgan owner Kuwait Projects Co (KIPCO) said last month it wants to set up a dedicated investment banking and asset management unit, and another that provides other commercial services, such as retail and corporate.

Burgan Bank chief executive Jonathan Lyon told Reuters earlier this month the lender wanted to acquire banks in the Middle East and Northern Africa as part an expansion programme.

UGB said last month it was in talks to sell some of its assets, without identifying a suitor.

Burgan Bank officials could not be immediately reached for comment. - Reuters